Study on interval-based economic evaluation methods for power construction projects

This paper introduces an interval-based approach in economic evaluation on power construction projects. Firstly, interval models are set up to extend classic methods, including Interval Net Present Value method, Interval Payback Period method, Interval Internal Rate of Return method. Additionally, a method to measure risk is also proposed. Then, cases are given to test and compare these interval methods under both certain and uncertain life period conditions. Case study suggests that the interval-based methods are efficient and flexible to deal with evaluation problems on power construction projects, which can effectively judge the feasibility of a project, as well as estimate the risk likely to be undertaken. Finally, these three typical methods are comprehensively compared in order to give instruction of practical application.